o 


RAILROAD  VALUATION 


Report  of 

* 

State  Assessors 


to  the 

i 

75th  Legislature  of  Maine 


1911 


RAILROAD  VALUATION, 


VW 


Report  of  the  State  Assessors  to  the  75TH  Legislature. 


1911 


To  the  President  of  the  Senate  and  the  Speaker  of  the  House: 

We  respectfully  submit  the  following  report  in  compliance 
with  an  order  of  the  Legislature  dated  March  15th,  1909,  “That 
the  State  Assessors  be  instructed  to  ascertain  the  actual  value  of 
all  the  railroad  property  in  the  State  of  Maine  of  all  kinds,  in- 
cluding franchises,  real  estate,  bonds  and  stock  and  report  to  the 
next  Legislature  for  the  purpose  of  taxation/’ 

We  have  endeavored  to  place  a reasonable  construction  upon 
the  direction  contained  in  this  order,  and  from  the  discussion 
which  preceded  its  passage  in  both  branches  of  the  Legislature, 
and  the  fact  that  the  avowed  object  of  the  order  was  for  the 
purpose  of  taxation,  we  are  led  to  believe  that  the  Legislature 
did  not  intend  to  instruct  the  State  Assessors  to  undertake  the 
impossible  task  of  ascertaining  the  actual  value  of  this  railroad 
property,  but  rather  that  we  should,  in  the  light  of  all  the  infor- 
mation and  facts  that  we  could  obtain  report  what  we  believed 
to  be  a just  and  reasonable  value  of  the  property  of  each  rail- 
road corporation  employed  in  the  operation  of  its  business ; such 
a valuation  as  is  defined  by  the  Constitution  and  laws  of  the 
State  as  the  proper  basis  of  taxation. 

The  mileage  and  capitalization  we  have  considered  as  of  June 
30th,  1910,  and  we  have  in  subsequent  portions  of  this  report 
made  reference  to  some  changes  that  have  taken  place  since  that 
date. 


2 


STATE  ASSESSORS'  RAILROAD  VALUATION. 


The  taxation  of  railroad  property  upon  the  basis  of  valuation 
is  not  a new  method.  In  some  form  although  with  varying 
methods  for  securing  the  valuation,  it  exists  in  most  of  the 
States  of  the  Union. 

In  this  State  the  real  estate  of  railroads  comprising  approxi- 
mately ten  per  cent,  of  the  investment  has  been  uniformly  taxed 
upon  the  value  oT  Uie  property'.  'One  of  the  early  provisions  of 


the  tax  laws  of  Maine  was  that  “Taxes  on  real  estate  shall  be 
assessed  in  the  town  where  the  estate  lies,”  and  the  first  pro- 
vision for  the  taxation  of  railroad  property  in  this  State  when 
'tfie!  Tbfai  railrbad  «ifMdge:  waSless  than  -seventy-five  miles  was 
enacted  by  Chap.  165  of  the  Public  Laws  of  1845, — “That  the 
buildings  of  every  railroad  corporation  or  association  whether 
within  or  without  the  located  right  of  way,  and  its  land  and 
fixtures  outside  of  its  located  right  of  way,  are  subject  to  taxa- 
tion by  the  cities  and  towns  in  which  the  same  is  situated,  as 
other  property  is  taxed  therein.” 


! This  provision  has 'been  retained  in  our  statutes  ever  since 
and  this  principle  is  observed  in  the  case  of  all  corporations 
taxed  directly  by  the  State  on  a basis  other  than  the  ad  valorem 
method,  so  that  their  real  estate  shall  be  taxed  in  the  munici- 
pality where  situated  on  the  same  basis  as  other  real  estate  is 
taxed. 


RaiLroad  Valuations  in  Other  States. 

..There  is  little  agreement  as  to  the  proper  method  of  ascer- 
taining the  value  of  railroads  as  a basis  of  taxation  in  those 
States  that  have  adopted  the  ad  valorem  system.  In  some  of 
them  it  would  seem,  to  be  little  more  than  the  merest  guess- 
work. , In  others  the  result  is  apparently  reached  by  a compro- 
mise of  the  varying  views  of  the  rhembers  of  the  Assessment 
.Board  much  the  same  as  a jury  in* damage  cases  in  order  to  se- 
cure an  agreement  makes  a mathematical  average  of  the  opinion 
of  each  member  of  the  jury. 

In  some  of  the  States,  however,  a sincere  effort  has  been 
made  to  arrive  at  the  proper  valuation  by  diligent  investigation 
with  the  aid  of  expert  assistance. 

The  State  of  Michigan,  in  1900  in  determining  to  change  from 
the  gross  earnings  to  the  ad  valorem  system  of  taxing  its  rail- 
roads, made  the  most  elaborate  and  perfect  attempt  on  record  to 


STATE  ASSESSORS'  RAILROAD  VALUATION. 


3 


determine  what  the  physical  property  of  railroads  was  worth 
on  the  basis  of  the  cost  of  reproduction  less  the  normal  deprecia- 
tion for  wear  and  use. 

But  when,  at  a great  expense,  this  very  elaborate  appraisal 
was  made  it  was  at  once  apparent  that  it  had  but  little  practical 
value  for  the  purposes  of  taxation.  Manifestly  other  factors 
than  the  cost  of  reproduction  must  be  recognized  in  order  to 
determine  the  value  of  the  Michigan  railroads.  The  State  Tax 
Commissioners  readily  observed  this  and  while  they  did  not 
make  public  the  means  by  which  their  final  conclusions  were 
reached,  the  real  valuation  was  determined  on  quite  other 
grounds  than  that  of  the  cost  of  reproduction,  and  that  the  most 
important  controlling  factor  was  that  of  railroad  earnings.  The 
result  was  that  some  roads  were  valued  considerably  above  the 
cost  of  reproduction,  while  others  were  valued  very  much  below 
it  and  where  the  valuation  was  much  the  same  as  that  of  cost  of 
reproduction  less  normal  depreciation  it  was  a mere  coincidence. 

Where  the  Tax  Commissioners’  valution  was  above  the  cost 
of  reproduction  appraisal,  the  difference  was  called  the  intangi- 
ble or  franchise  value  and  where  it  was  below,  the  difference 
was  not  named  though  more  or  less  intangible  also.  The  fran- 
chise value  in  some  cases  apparently  was  a minus  quantity. 

But  although  the  experience  of  Michigan  was  obtained  at  a 
large  cash  outlay  for  securing  a valuation  of  the  physical  ele- 
ments of  railroad  property  the  experiment  tried  there  has  been 
exceedingly  valuable  for  the  other  States  and  therefore  the  out- 
la)  should  not  be  regretted. 

The  Cooley- Adams  appraisal  of  the  Michigan  railroads  has 
demonstrated  that  however  serviceable  a physical  valuation  may 
be  in  affording  an  independent  and  scientific  basis  for  judging 
the  cost  of  modern  railroads  under  the  varying  conditions  of 
that  State,  or  as  furnishing  a necessary  basis  for  the  regulation 
of  capitalization  and  service  rates,  it  is  quite  futile  as  a means 
of  ascertaining  the  commercial  value  of  a railroad  as  a going 
concern,  or  as  securing  an  equitable  basis  of  taxation. 

In  an  address  before  the  Minnesota  Academy  of  Social 
Sciences  in  December,  1907,  the  Hon.  Robert  H.  Shields,  Chair- 
man of  Michigan  Tax  Commission,  said : “In  determining  the 
amount  of  tax  which  shall  be  imposed  upon  corporate  property, 
the  question  of  method  must  always  be  subordinate  to  the  other 


4 


STATE  ASSESSORS’  RAILROAD  VALUATION. 


question  of  the  equity  of  the  result  which  follows  it  ; and  other 
things  being  equal,  preference  should  always  be  given  to  the 
most  simple  and  effective  method.” 

“No  hard  and  fast  rule,  or  theory,  can  be  employed  in  the 
valuation  of  corporate  property.  In  determining  the  true  cash 
value  of  railroad  property  it  is  proper  to  take  into  consideration 
the  cost  of  reproduction,  its  value  after  allowing  for  deprecia- 
tion, its  location,  its  gross  and  net  earnings,  or  the  fact  that  it  is 
not  earning  a fair  profit,  the  permanency  and  general  character 
of  its  business,  the  par  and  market  value  of  its  stock  and  bonds, 
its  connections  and  terminals,  and  in  short  every  element  and 
condition  that  adds  to  or  detracts  from  its  supposed  value.” 

“But  each  railroad  stands  alone.  And  no  theory  yet  advanced 
can  be  arbitrarily  employed  in  fixing  the  value  of  each  and  every 
road  without  working  the  rankest  kind  of  injustice  on  some  of 
them.” 

In  obtaining  a valuation  of  the  physical  properties  of  the 
Wisconsin  railroads  in  1903  no  such  elaborate  and  expensive 
methods,  for  the  State  at  least,  were  attempted.  In  fact  the 
main  expense  was  borne  by  the  railroads  themselves.  Each  of 
the  railroad  corporations  in  the  State  was  asked  by  the  State 
Tax  Commission  to  make  an  examination  of  its  physical  proper- 
ty, being  furnished  with  blanks  to  be  filled  in  under  the  same 
headings  and  items  of  cost  as  were  enumerated  in  the  Michigan 
appraisal  which  was  made  under  the  direction  of  Prof.  Cooley. 
Prof.  W.  D.  Taylor  of  the  University  of  Wisconsin  as  advisory 
engineer  of  the  Tax  Commission,  was  charged  with  the  duty  of 
going  over  the  appraisals  of  each  railroad  to  examine  and  revise 
them. 

But  the  physical  valuation  of  the  Wisconsin  railroads  even  as 
revised  was  at  most  only  one  factor  considered  by  the  Tax  Com- 
missioners and  as  in  the  case  of  Michigan  the  valuation  of  the 
railroad  property  was  determined  largely  on  other  grounds  from 
a study  of  the  operations  of  the  several  railroad  systems  cover- 
ing a term  of  several  years  giving  special  importance  to  the 
demonstrated  earning  capacity  of  the  different  roads. 

U.  S.  Valuation  of  Railroad  'Property. 

In  1904  the  Department  of  Commerce  and  Labor  made  a val- 
uation of  all  the  steam  railroad  property  in  the  United  States. 


STATE  ASSESSORS'  RAILROAD  VALUATION. 


5 


The  value  of  Pullman  cars  and  private  cars,  however,  were  not 
included  for  want  of  sufficient  data.  This  valuation  was  made 
for  the  Census  Bureau  as  one  step  in  determining  the  wealth  of 
the  Nation. 

The  work  was  placed  under  the  direction  of  Prof.  B.  H. 
Meyer  of  the  University  of  Wisconsin  who  represented  jointly 
the  Interstate  Commerce  Commission  and  the  Bureau  of  the 
Census. 

The  formal  report  was  prepared  by  Prof.  Henry  C.  Adams, 
“who  from  the  beginning  was  held  responsible  for  the  accuracy 
of  the  method  and  the  integrity  of  the  result.” 

This  valuation  was  determined  by  a method  which  eliminated 
personal  opinion  and  judgment,  and  its  aim  was  to  disclose  the 
commercial  value  of  railroad  property  as  a business  proposition. 
The  value  of  each  operating  railroad  was  determined  by  a cap- 
italization of  the  net  operating  income  and  in  the  case  of  inter- 
state railroads  the  values  were  assigned  to  States  upon  the  basis 
of  gross  earnings  as  the  most  practicable  method. 

In  this  report  of  Prof.  Adams  which  is  contained  in  Bulletin 
No.  21  of  the  Department  of  Commerce  and  Labor  published  in 
1905  the  Maine  railroads  were  given  as  2021.58  miles  with  a 
total  value  of  $80,146,000  or  $39,600  per  mile.  About  one  year 
ago  we  endeavored  to  secure  some  data  from  the  Department 
of  Commerce  and  Labor  which  might  show  the  valuations  which 
Prof.  Adams  assigned  to  Maine  territory  of  the  interstate  roads 
which  extend  into  this  State.  Our  request,  however,  was  polite- 
ly refused  on  the  ground  that  the  Department  did  not  deem  it 
expedient  to  disclose  any  information  regarding  this  valuation, 
other  than  that  contained  in  Bulletin  No.  21  referred  to. 

Unquestionably  the  earning  capacity  of  a railroad  is  the  most 
important  factor  to  be  considered  in  determining  its  value. 
Economists  and  investors  alike  are  in  agreement  on  this  propo- 
sition. It  canont  be  too  often  stated  that  the  value  of  a railroad 
depends  upon  what  it  can  earn.  In  view,  however,  of  the  regu- 
lative measures  which  may  be  invoked  by  the  Interstate  Com- 
merce Commission  and  Public  Service  Commissions  in  the  sev- 
eral States,  a more  correct  statement  would  be  that  the  value  of 
a railroad  depends  upon  what  it  is  permitted  to  earn. 

Cost  of  production  and  value  as  a utility  are  distinct  propo- 
sitions and  quite  often  there  is  but  little  logical  relation  between 


o 


STATE  ASSESSORS'  RAILROAD  VALUATION. 


them.  The  Courts  have  never  held  that  cost  is  a test  of  value, 
but  on  the  other  hand  have  uniformly  adhered  to  the  doctrine 
that  “the  value  of  property  results  from  the  use  to  which  it  is 
put,  and  varies  with  the  profitableness  of  that  use,  present  and 
prospective,  actual  and  anticipated.” 

In  this  report  we  have  not  undertaken  to  estimate  the  value 
of  the  stocks  and  bonds  of  the  railroads  doing  business  in  this 
State.  But  comparatively  few  of  these  securities  are  quoted  in 
the  open  market.  Many  of  them  are  unknown  in  the  open  mar- 
ket. Another  practical  difficulty  is  that  it  would  require  a more 
thorough  inquiry  than  we  have  been  able  to  make  in  order  to 
make  a fair  assignment  of  the  stock  and  bonds  of  the  interstate 
roads  as  fairly  representing  their  property  within  Maine  terri- 
tory. We  have,  however,  given  in  subsequent  portions  of  this 
report  some  reference  and  description  of  the  stock  and  bonds  in 
a brief  description  of  each  operating  railroad. 

We  present  table  “A”  showing  the  name  of  each  operating 
railroad,  the  miles  of  main  track  operated  within  this  State,  the 
assessed  value  of  the  real  estate  subject  to  local  taxation,  and 
our  estimate  of  the  total  value  of  each  railroad  including  the 
real  estate,  as  property  in  motion,  as  a going  concern.  This  val- 
uation of  course  includes  all  rights  and  franchises,  appurtenant 
to  the  property.  It  would  be  impossible  to  state  the  value  of  the 
franchise  of  each  road  without  first  obtaining  an  inventory  and 
valuation  of  the  physical  elements  by  competent  engineers  and 
then  in  so  far  as  the  earnings  show  a greater  net  amount  than 
a fair  return  upon  the  value  of  the  physical  property  a capital- 
ization of  this  excess  might  be  properly  termed  the  intangible 
or  franchise  value. 

Table  “B”  gives  the  street  railroads  of  the  State,  the  schedule 
giving  the  same  classification  as  contained  in  schedule  “A”. 

As  will  be  observed  the  total  valuation  of  the  real  estate  of  the 
steam  railroads  subject  to  local  taxation  is  given  as  $6,169,348. 
At  the  average  rate  of  property  taxation,  $21.77,  this  yields 
taxes  amounting  to  $134,306.70.  The  State  taxes  upon  the 
gross  earnings  of  these  railroads  for  1910  amount  to  $684,268.- 
81,  making  the  total  taxes  of  the  steam  railroads  approximately 
$818,575.51,  which  is  equal  to  $362.00  per  mile.  The  real  estate 
of  the  street  railroads  is  given  $1,195,012,  which  at  the  average 
local  rate  produces  taxes  amounting  to  $25,915.41  and  with  the  ' 


STATE  ASSESSORS  RAILROAD  VALUATION.  7 

State  taxes  upon  gross  earnings  of  $35,497-53  makes  the  total 
taxes  of  the  street  railroads  for  1910  approximately  $61,412.94. 

Some  of  the  street  railroads  are  engaged  in  other  business 
than  the  operation  of  their  railways  and  the  real  estate  given 
includes  property  employed  in  such  business,  we  are  unable  to 
separate  it,  but  the  total  value  we  have  given  each  road  is  in- 
tended to  be  only  the  valuation  of  property  used  in  the  opera- 
tion of  the  railway. 

TABLE  “A” 


Steam 


Name  of  Railroad. 

Bangor  & Aroostook  Railroad  Co. 

Boston  & Maine  Railroad 

Bridgton  & Saco  River  Railroad 

Co 

Canadian  Pacific  Railroad  Co.... 

Georges  Valley  Railroad  Co 

Grand  Trunk  Railway  Co.  of  Can- 
ada   

Kennebec  Central  Railroad  Co 

Lime  Rock  Railroad  Co 

Maine  Central  Railroad  Co 

Monson  Railroad  Co  

Sandy  River  & Rangeley  Lakes 

R.  R 

Sebasticook  & Moosehead  R.  R. 

Co 

Somerset  Railway  Co 

Washington  County  Railroad  Co.  . 
Wiscasset,  Waterville  & Farming- 

ton  Railway  Co 

York  Harbor  & Beach  Railroad  Co. 
Portland  Union  Railway  Station 

Co.  

The  Pullman  Company  


Aieroads. 


Miles 

in 

Real 

Maine. 

Estate. 

Ttl.  Value. 

599-34 

$734,709 

$24,378,630 

157-99 

943,754 

8,425,342 

21.25 

5,750 

25L758 

176.70 

79,925 

5,251,067 

8.50 

1,500 

48,173 

89.51 

1,409,250 

3,970,788 

5.00 

4,600 

76,062 

12.57 

0,000 

511,985 

765.53 

2,634,240 

37,109,066 

8.16 

1,275 

43,090 

103.40 

24,475 

953,853 

15.00 

2,500 

143,442 

93-99 

32,950 

1,879,800 

133-68 

86,990 

2,761,636 

57-46 

8,500 

114,920 

11. 51 

8,930 

242,000 

190,000 

250.000 

100.000 

2,259-S9  $6,169,348  $86,511,612 


8 


STATE  ASSESSORS'  RAILROAD  VALUATION. 


TABLE  “B” 

Street  Railroads. 

Real. 


Name  of  Railroad. 

Miles. 

Estate. 

Ttl.  Value. 

Aroostook  Valley  Railroad  Co.... 

14.16 

$3,5oo 

$400,000 

Atlantic  Shore  Line  Railway 

87.517 

112,332 

1,739,440 

Auburn  & Turner  Railroad  Co.... 

8-5 

6,600 

40,000 

Bangor  Railway  & Electric  Co.... 

57.224 

189,-025 

1,430,600 

Benton  & Fairfield  Railway  Co... 

4.12 

800 

20,600 

Biddeford  & Saco  Railroad  Co.... 

7.61 

12,600 

316,257 

Calais  Street  Railway  Co 

4.00 

100 

25,000 

Fairfield  & Shawmut  Railway  .... 
Lewiston,  Augusta  & Waterville 

3-1 

860 

37,190 

Street  Railway  

130.847 

136,800 

3,27Li75 

Norway  & Paris  Street  Railway.  . 

2.13 

5,5oo 

34,200 

Portland  Railroad  Co 

Portland  & Brunswick  Street  Rail- 

81.6 

494,700 

3,819,036 

way  

Rockland,  Thomaston  & Camden 

15-8 

39,925 

112,500 

Street  Railway  

Rockland,  So.  Thomaston  & St. 

21 . 167 

104,572 

587,572 

George  Railway  

3-917 

950 

19,585 

Somerset  Traction  Company  

Waterville  & Oakland  Street  Rail- 

12.2 

7,900 

7L450 

way  

5-4 

11,250 

81,000 

Waterville  & Fairfield  Railway  . . 

5.00 

68,100 

212,455 

464.392 

$1,195,012 

$12,218,060 

Bangor  & Aroostook  Railroad. 

The  capital  stock  of  this  railroad  on  June  30th,  1910,  was 
$3,004,200  and  the  funded  debt  $22,499,200  and  the  valuation 
we  report  is  but  little  below  the  total  capitalization.  A steady 
growth  in  mileage  is  shown  during  the  past  decade,  the  line  op- 
erated in  1900  being  364  miles  and  on  June  30th,  1910,  it  was 
reported  as  599.34  miles.  Since  that  date  there  has  been  com- 
pleted the  line  from  Grand  Isle  to  Fort  Kent,  a distance  of  28 
miles,  thus  making  the  present  mileage  of  main  line  track  oper- 
ated 627.34  miles.  There  has  been  issued  on  account  of  this  new 
construction  additional  stock  amounting  to  $159,600  and  bonds 
$804,000.  Further  extensions  of  this  railroad  are  contemplated. 
The  Bangor  & Aroostook  Railroad  furnishes  railway  service 
to  a territory  of  great  natural  resources.  A significant  item  in 


STATE  ASSESSORS'  RAILROAD  VALUATION. 


9 


its  freight  traffic  as  showing  the  importance  of  the  lumber  in- 
terests of  Maine  is  the  fact  that  forty-one  per  cent,  of  its 
freight  revenue  reported  in  1910  was  for  transportation  of  for- 
est products.  The  gross  earnings  per  mile  reported  in  1910  are 
approximately  double  what  they  were  ten  years  ago. 

The  dividend  paid  on  the  stock  in  1910  was  four  per  cent,  and 
the  average  interest  rate  paid  on  the  funded  debt  is  4.29  per 
cent.  The  stock  capitalization  being  so  small,  about  12  per  cent, 
of  the  total  capitalizations,  a slight  increase  in  earnings  would 
make  a higher  dividend  rate  practicable.  The  territory  through 
which  this  road  extends  has  shown  a great  development  and  a 
rapid  increase  in  population  and  wealth. 

Boston  & Maine  Railroad. 

The  operations  over  the  three  lines  of  this  road  extending 
from  Portland  to  the  New  Hampshire  state  line  represent  but  a 
fragment  of  its  immense  transportation  business  which  spreads 
over  a large  portion  of  New  England  territory  and  also  some 
portions  of  the  state  of  New  York,  and  the  Dominion  of  Canada. 

The  capital  stock  of  the  Boston  & Maine  is  given  as  $28,841,- 
300  common  stock,  $3,149,800  preferred  stock,  and  $42,073,000 
funded  debt.  The  stock  of  its  leased  lines  amounts  to  $62,239,- 
500  and  the  funded  debt  $44,264,000.  The  dividend  rate  on  its 
preferred  stock  is  6 per  cent,  and  on  its  common  stock  in  1910 
was  6 per  cent.  The  average  rate  of  interest  on  its  bonds  is  4.05 
per  cent.  The  average  dividends  paid  on  the  stock  of  its  leased 
lines  is  5.52  per  cent,  and  the  average  rate  of  interest  paid  on 
the  funded  debt  is  4.02  per  cent.  To  summarize,  the  total  out- 
standing stock  and  bonds  of  the  Boston  & Maine  Railroad  in- 
cluding its  leased  lines  on  June  30th,  1910,  was  $180,567,990.70 
on  which  dividends  and  interest  were  paid  amounting  to  $8,785,- 
272,  being  equivalent  to  4.87  per  cent.  How  much  of  this  im- 
mense capitalization  can  properly  be  assigned  to  the  157.99 
miles  of  the  lines  within  this  State  we  are  unable  to  determine. 
Nor  is  there  reported  separately  the  actual  earnings  and  operat- 
ing expenses  within  this  State.  However,  we  believe  the  val- 
uation we  report  of  the  Boston  & Maine  property  within  this 
State  is  just  and  reasonable.  The  common  stock  of  the  Boston 
& Maine  is  quoted  at  $118  and  the  preferred  stock  at  $150  per 
share.  $1,443,600  of  the  capital  stock  of  the  Boston  & Maine 
was  held  in  the  State  of  Maine  on  June  30th,  T910. 


IO  STATE  ASSESSORS’  RAILROAD  VALUATION. 

Brldgton  & Saco  River  Railroad. 

This  narrow  gauge  railroad  extends  from  Bridgton  Junction 
on  the  Mountain  Division  of  the  Maine  Central  Railroad  to 
Harrison,  a distance  of  twenty-one  and  one-fourth  miles.  The 
business  of  this  road  covering  several  years  past  shows  a perma- 
nent earning  power.  It  serves  a thrifty  and  prosperous  territo- 
ry. The  capital  stock  is  $102,250  upon  which  4 per  cent,  divi- 
dends were  paid  in  1910  and  the  funded  debt  $163,000  with  the 
rate  of  interest  4 per  cent. 

The  Canadian  Pacific. 

The  property  of  this  railroad  operated  in  this  State  consists 
of  The  International  Railway  of  Maine  extending  from  the 
Canadian  border  to  Mattawamkeag,  144.5  miles;  the  Houlton 
Branch  from  the  New  Brunswick  line  to  Houlton  3 miles,  and 
the  Aroostook  River  Railroad  extending  from  the  boundary  of 
New  Brunswick  to  Presque  Isle,  29.2  miles;  a total  of  176.70 
miles.  The  total  capitalization  of  these  lines  is  as  follows : Stock 
$2,273,000  and  funded  debt  $3,514,000,  total  $5,787,000.  No 
dividends  are  paid  upon  the  stock  and  the  average  interest  paid 
upon  the  funded  debt  is  5 per  cent.  The  cost  of  these  lines  in- 
cluding equipment  is  given  as  $5,787,000,  but  if  we  should  add 
the  amount  expended  for  additions  and  improvements  since 
1907  it  would  make  the  total  cost  over  $7,500,000.  The  main 
line  from  the  Canadian  border  to  Mattawamkeag  which  con- 
stitutes the  principal  portion  of  the  mileage,  participates  in  low 
through  freight  rates  from  the  West  to  the  Seaboard  and  the 
local  earnings  are  not  large. 

The  earnings  of  this  Canadian  Pacific  property  as  reported  to 
the  Railroad  Commissioners,  do  not  justify  the  valuation  we 
have  placed  upon  it,  but  we  are  not  unmindful  of  the  fact  that 
this  line  is  a part,  an  important  link  in  a great  and  profitable 
railroad  system,  and  thus  possesses  elements  of  value  beyond  a 
capitalization  of  the  earnings  assigned  to  it. 

Georges  Valley  Railroad. 

This  is  a railroad  line  of  8.50  miles  extending  from  the  town 
of  Union  to  the  town  of  Warren  where  it  connects  with  the 
Maine  Central  Railroad.  The  stock  of  this  railroad  is  reported 
as  $100,000  and  the  bonds  $50,000.  No  dividends  are  paid  upon 


STATE  ASSESSORS'  RAILROAD  VALUATION. 


II 


the  shares  and  they  have  no  quotable  value.  The  value  we  have 
placed  upon  this  property  represents  a capitalization  of  its  av- 
erage net  earnings  covering  a period  of  several  years. 

Grand  Trunk  Railway  of  Canada. 

The  only  property  operated  by  this  Company  within  this  State 
of  which  statistics  are  available  relates  to  the  Atlantic  and  St. 
Lawrence  Railroad  extending  from  the  Canadian  border  at 
Island  Pond,  Vt.,  to  Portland,  Me.,  165.22  miles,  the  Lewiston 
& Auburn  Railroad  from  Lewiston  Junction  on  the  main  line 
to  Lewiston  5.41  miles,  and  the  Norway  Branch  which  extends 
from  South  Paris  to  Norway  Village  1.50  miles,  a total  of 
172.13  miles,  of  which  89.51  miles  are  within  the  State  of  Maine. 
All  of  this  property  except  the  Norway  Branch  is  operated 
under  lease  and  the  Grank  Trunk  pays  6 per  cent,  on  the  bonded 
debt  of  $3,438,000  and  6 per  cent,  on  the  common  stock, 
amounting  to  $5,484,000 ; also  as  rental  6 per  cent,  on  the  capital 
stock  of  the  Lewiston  & Auburn  Railroad  which  is  $300,000. 

The  earnings  from  operation  of  these  lines  are  not  sufficient 
to  meet  these  obligations  and  as  in  the  case  of  the  Canadian 
Pacific  do  not  justify  the  valuation  we  have  reported,  but  this 
property  is  part  of  a great  railroad  system  and  the  importance 
of  the  City  of  Portland  as  the  most  accessible  point  to  the  Sea- 
board certainly  is  an  important  factor  in  the  value  of  this  prop- 
erty. 

Kennebec  Central  Railroad. 

This  is  a narrow  gauge  railroad  extending  from  the  town  of 
Randolph  opposite  the  City  of  Gardiner  to  the  National  Sol- 
diers Home  at  Togus,  5 miles.  The  capital  stock  is  reported  as 
$40,000  and  funded  debt  $27,000.  The  earnings  are  not  large 
but  thus  far  seem  to  be  amply  sufficient  to  support  the  capital- 
ization. Dividends  of  6 per  cent,  were  paid  on  the  stock  in  1910. 

Lime  Rock  Railroad. 

This  is  a railroad  operated  exclusively  for  freight  in  connec- 
tion with  the  operations  of  the  Rockland-Rockport  Lime  Co. 
Its  prosperity  is  entirely  dependent  on  that  of  the  Lime  Co.  The 
percentage  of  expenses  is  small  compared  with  other  railroads 
and  the  net  earnings  large. 


12 


STATE  ASSESSORS'  RAILROAD  VALUATION. 


The  capital  stock  is  $450,000  and  the  funded  debt  $400,000. 
The  rate  of  interest  on  this  sum  is  4 per  cent,  and  dividends  of 
43/2  per  cent,  were  paid  on  the  stock  in  1910.  The  earnings  of 
this  road  apparently  would  justify  a higher  valuation  than  we 
have  reported,  but  a considerable  portion  of  its  ways  and  struc- 
tures are  of  a perishable  nature  and  the  depreciation  is  rapid, 
and  so  we  regard  our  valuation  reasonable. 

Maine  Central  Railroad. 

The  steady  growth  of  railroad  business  in  New  England  is 
nowhere  more  strikingly  shown  than  in  the  comparative  income 
figures  of  the  Maine  Central  System.  Ten  years  ago  the  mile- 
age operated  was  given  as  815.83.  No  material  extension  was 
reported  until  1907  when  the  Portland  & Rumford  Falls  Rail- 
road and  the  Rumford  Falls  & Rangeley  Lakes  were  leased  for 
a term  of  999  years,  making  the  total  mileage  931.40  miles.  Yet 
with  the  acquisition  of  these  lines  the  latter  through  a sparsely 
settled  territory  the  gross  earnings  per  mile  of  the  whole  Maine 
Central  System  in  1910  were  nearly  40  per  cent,  greater  than 
was  the  case  in  1900.  The  total  mileage  given  in  1910  is  931.94 
of  which  765.53  miles  are  within  this  State. 

The  capital  stock  of  the  Maine  Central  is  reported  as  $4,995,- 
700  and  the  funded  debt  $18,892,192.  The  dividend  rate  on  the 
stock  for  three  years  past  has  been  8 per  cent,  and  the  average 
rate  of  interest  on  the  funded  debt  is  4.89  per  cent.  The  total 
stock  of  its  leased  lines  is  $12,520,738  and  the  average  dividend 
paid  as  rental  is  4.31  per  cent.  The  funded  debt  of  its  leased 
line  amounts  to  $7,910,500  with  an  average  interest  rate  of  4.23 
per  cent. 

To  summarize,  the  total  capital  stock  and  funded  debt  of  the 
Maine  Central  Railroad  owned  and  leased  on  June  30th,  1910, 
was  $44,319,130  on  which  dividends  and  interest  were  paid  dur- 
ing the  year  past  amounting  to  $2,026,463.12,  being  an  equiva- 
lent to  4.95  per  cent,  of  the  capitalization.  The  shares  of  the 
Maine  Central  are  fairly  quotable  at  $200  per  share  and  nearly 
one-fourth  of  the  stock  is  held  in  Maine  or  to  be  exact  $1,191,- 
500. 

The  Maine  Central  controls  the  Somerset  Railway  and  the 
Washington  County  Railway  through  stock  ownership,  and  a 
recent  acquisition  is  the  short  line  of  15  miles  of  the  Sebasti- 


STATE  ASSESSORS’  RAILROAD  VALUATION. 


13 


cook  & Moosehead  Railroad.  A measure  is  now  pending  before 
the  Legislature  looking  towards  the  merging  of  these  three 
railroads  with  the  Maine  Central  System.  Railroad  consolida- 
tion generally  means  more  and  better  service  and  so  the  bring- 
ing of  these  lines  under  one  management  no  doubt  will  be  a ben- 
efit to  the  territory  through  which  these  lines  extend. 

Monson  Railroad. 

This  railroad  extends  from  Monson  Junction  on  the  Bangor 
& Aroostook  Railroad  to  the  slate  quarries  in  the  town  of  Mon- 
son, 8.16  miles.  The  capital  stock  is  given  as  $70,000  and  the 
funded  debt  as  $70,000.  No  dividends  are  paid  upon  the  stock 
and  the  net  earnings  are  not  sufficient  to  pay  the  interest  of  6 
per  cent,  on  the  bonds.  The  chief  value  of  this  railroad  consists 
in  the  indispensable  service  it  furnishes  to  the  slate  manufac- 
turers in  Monson. 

Sandy  River  & Rangeley  Lakes  Railroad. 

This  road  represents  a consolidation  of  the  Sandy  River  Rail- 
road, The  Franklin  & Megantic  Railway,  the  Kingfield  & Dead 
River  Railway,  the  Phillips  & Rangeley  Railroad  and  The 
Madrid  Railroad,  these  narrow  gauge  lines  having  a total  of 
103.40  miles  operated.  The  capital  stock  is  $241,600  and  the 
funded  debt  $730,000.  We  have  record  of  only  two  years’  oper- 
ations of  these  consolidations.  This  line  or  system  shows  thus 
far  good  earning  power,  under  the  good  management  which  is 
shown  in  its  operations.  Dividends  are  paid  of  4 per  cent,  on 
the  stock  and  average  interest  of  4 per  cent,  on  the  funded  debt 
in  1910. 


Sebasticook  & Moosehead  Railroad. 

This  railroad  line  extends  from  Pittsfield  to  Mainstream,  a 
distance  of  15  miles.  The  results  of  operation  of  this  line  as  an 
independent  system  have  not  been  satisfactory  and  it  has  recent- 
ly been  purchased  by  the  Maine  Central  Railroad.  Doubtless 
this  change  of  management  will  result  in  more  efficient  service. 
The  cost  of  this  road  including  equipment  is  stated  as  $229,- 
117.50,  but  we  feel  justified  in  estimating  the  value  much  less 
for  reasons  above  indicated.  The  capital  stock  is  given  as 
$180,000. 


H 


STATE  ASSESSORS'  RAILROAD  VALUATION. 


Somerset  Railway. 

This  railroad  extends  from  Oakland  to  Kineo  Station  90.67 
miles  and  has  short  branches  with  total  length  of  3.32  miles, 
making  the  total  line  operated  93.99  miles.  The  capital  stock  is 
$736,649  and  the  funded  debt  $2,761,500  with  an  average  inter- 
est rate  of  4.66  per  cent.  The  stock  has  no  quotable  value.  The 
net  earnings  from  operation  of  this  road  are  not  at  present 
sufficient  to  meet  its  interest  obligations.  A large  amount  has 
been  expended  during  the  past  three  years  for  maintenance  and 
the  road  is  much  improved.  The  future  prosperity  of  this  line 
depends  upon  the  developments  of  industry  along  the  line  which 
runs  a considerable  distance  through  an  almost  unbroken  forest. 
We  believe  this  railroad  property  has  a prospective  value  far  in 
excess  of  the  valuation  we  have  reported. 

Washington  County  Railway. 

This  main  line  extends  from  Washington  Junction  on  the  Bar 
Harbor  Branch  of  the  Maine  Central  Railroad  to  Calais,  a dis- 
tance of  102.49  miles;  from  Ayers  Junction  on  the  main  line  to 
Eastport  16.48  miles ; from  St.  Croix  Junction  on  the  main  line 
to  Princeton  17.85  miles  and  branch  tracks  of  1.96  miles,  making 
its  total  length  operated  138-78  miles  of  which  133.68  miles  are 
within  this  State,  5.1  miles  extending  through  New  Brunswick. 
The  capital  stock  is  $2,500,000  and  the  funded  debt  is  $2,500,- 
000.  The  cost  of  the  road  and  equipments  to  June  30th,  1910, 
is  reported  as  $5,058,212.  The  stock  has  no  quotable  value  and 
the  rate  of  interest  on  the  funded  debt  is  3J4  per  cent.  The  net 
earnings  are  more  than  sufficient  to  meet  its  interest  obligations 
and  we  believe  that  this  road  so  necessary  and  beneficial  to  the 
territory  through  which  it  extends  will  show  better  returns  in 
the  future. 

Wiscasset,  Waterville  & Farmington  Railway. 

This  narrow  gauge  line  extends  from  tide  water  at  Wiscasset 
to  Weeks  Mills  in  China  and  branches  to  the  town  of  Winslow 
and  Albion.  The  capital  stock  consists  of  $100,000  common 
stock  and  $200,000  preferred  stock.  The  operations  of  this  road 
have  not  been  profitable  and  its  future  is  problematical. 


STATE  ASSESSORS'  RAILROAD  VALUATION. 


15 


York  Harbor  & Beach  Railroad. 

This  road  extends  from  Kittery  to  York  Beach  with  a branch 
track  to  the  United  States  Navy  Yard  and  has  a total  main  line 
of  1 1. 51  miles.  This  road  is  operated  independently  but  is  con- 
trolled by  the  Boston  & Maine  Railroad  through  ownership  of 
a majority  of  the  shares  of  capital  stock.  The  stock  is  reported 
as  $300,000  and  has  no  funded  debt.  The  cost  of  the  line  is 
given  as  $300,743.  Its  revenue  is  largely  from  passenger 
traffic. 

Portland  Union  Railway  Station  Co. 

This  terminal  property  of  the  Boston  & Maine  and  the  Maine 
Central  is  owned  and  managed  under  separate  corporate  owner- 
ship although  the  capital  stock  of  $50,000  is  owned  in  equal 
shares  by  the  railroad  corporations  above  named.  The  prop- 
erty consists  of  the  Portland  Union  Station  and  some  adjacent 
land.  This  property  is  subject  to  local  taxation  and  is  assessed 
locally  at  $190,000.  We  feel  justified,  however,  in  reporting  its 
just  and  reasonable  value  as  $250,000. 

The  Pullman  Company. 

The  Pullman  Company  does  not  consider  that  its  property 
comes  within  the  provisions  of  the  order  of  the  Legislature.  The 
Company’s  claim  is  that  it  has  no  property  within  the  State  of 
Maine  in  the  sense  in  which  the  term  is  ordinarily  used,  and  as 
used  in  the  order  referred  to ; at  any  rate  no  property  which  is 
liable  to  taxation,  as  the  Pullman  Company’s  cars  are  simply 
instrumentalities  of  interstate  commerce. 

However,  while  not  in  any  sense  admitting  the  liability  of  the 
Company’s  cars  to  taxation,  the  attorney  of  the  Company  in 
this  State  has  courteously  furnished  us  information  based  upon 
the  number  of  cars  owned  by  the  company  and  the  total  mileage 
over  which  such  cars  are  run,  also  the  mileage  of  such  cars  with- 
in this  State,  which  would  justify  us  in  estimating  that  on  the 
average  there  are  approximately  twenty  cars  within  the  Maine 
territory  and  that  a fair  estimate  of  their  value  would  be 
$100,000. 

Without  passing  upon  the  question  of  their  liability  to  tax- 
ation- we  have  included  them  in  table  “A”  as  “railroad  property 
within  the  State  of  Maine.” 


l6  STATE  ASSESSORS'  RAILROAD  VALUATION. 

STREET  RAILROADS. 

Aroostook  Valley  Railroad  Company. 

This  is  a new  railroad  14.16  miles  in  length,  the  pioneer  street 
railroad  in  Aroostook  County.  The  line  was  completed  and  op- 
erations began  on  June  20th,  1910.  So  we  have  only  a record 
of  the  results  of  ten  days’  operation.  The  capital  stock  is  re- 
ported as  $64,800  and  funded  debt  $351,500.  The  total  cost  of 
construction  is  given  as  $420,327.  Its  earning  power  is  yet  to  be 
demonstrated.  The  line  extends  from  Presque  Isle  and  Wash- 
burn through  a rich  agricultural  region  and  further  extensions 
are  contemplated. 

Atlantic  Shore  Line  Railway. 

This  road  has  a total  mileage  of  90.41  of  which  87.517  miles 
are  within  the  State,  the  remaining  mileage  being  in  New 
Hampshire.  The  capitalization  is  as  follows : — Common  stock 
$2,000,000.  Preferred  stock  $1,000,000  and  a funded  debt  of 
$3,265,000.  The  results  of  operation  show  that  the  earnings  are 
not  sufficient  to  support  such  a capitalization  and  since  June 
30th,  1910,  the  road  has  been  reorganized  in  order  to  place  the 
property  on  a more  substantial  basis  as  a business  proposition. 
Both  the  gross  and  net  earnings  of  this  Company  have  shown 
but  little  variation  during  the  past  three  years.  This  road  is 
nearly  all  in  York  County. 

Auburn  & Turner  Railroad. 

This  railroad  line  extends  from  Turner  Village  to  Lake  Au- 
burn 8.5  mile  connecting  there  with  the  Lewiston,  Augusta  & 
Waterville  Street  Railway.  The  capitalization  consists  of  $35,- 
000  preferred  stock,  $65,000  common  stock  and  $125,000  funded 
debt.  The  operations  of  this  road  have  not  been  profitable  and 
recently  the  property  has  been  purchased  by  the  Lewiston, 
Augusta  & Waterville  Street  Railway  above  referred  to  and  is 
now  being  operated  in  connection  with  that  road  where  it  log- 
ically belongs.  Doubtless  better  results  from  operation  will 
follow. 


STATE  ASSESSORS'  RAILROAD  VALUATION. 


1 7 


Bangor  Street  Railway  & Electric  Co. 

This  road  has  a total  main  line  mileage  of  57.224.  The  cap- 
ital stock  is  $1,500,000  and  funded  debt  $2,526,000.  This  cap- 
italization, however,  represents  a large  amount  of  property  not 
connected  with  the  operations  of  the  railroad.  The  valuation 
we  report  represents  only  the  railroad  property  itself.  The  rec- 
ord of  gross  and  net  earnings  for  the  past  few  years  shows  a 
steady  though  not  rapid  increase.  This  property  is  destined  to 
increase  in  value  under  its  present  management. 

Benton  & Fairfield  Railway. 

This  is  a railroad  extending  from  Benton  to  Fairfield  4.12 
miles.  The  capital  stock  is  $20,000  and  funded  debt  $33,000. 
This  road  derives  its  chief  value  from  the  service  it  furnishes  to 
the  manufacturing  company  which  is  the  principal  owner. 

Biddeford  & Saco  Railroad. 

This  road  extends  through  Biddeford  and  Saco  to  Old 
Orchard  7.611  miles.  The  capital  stock  is  $100,000  and  the 
funded  debt  $150,000.  The  dividend  rate  on  the  stock  is  5 per 
cent,  and  4 per  cent,  is  the  rate  of  interest  on  the  funded  debt. 
The  gross  and  net  earnings  have  shown  but  little  change  for 
several  years  past  but  are  amply  sufficient  to  meet  the  obliga- 
tions above  named  and  leave  a moderate  surplus. 

Calais  Street  Railway. 

This  line  extends  through  the  streets  of  the  City  of  Calais  4 
miles  and  St.  Stephens,  N.  B.,  3 miles.  The  capital  stock  is 
$100,000  and  the  funded  debt  $100,000.  The  operations  of  this 
line  have  not  been  profitable  and  the  earnings  are  manifestly 
insufficient  to  support  this  capitalization. 

Fairfield  & Shawmut  Railway. 

This  line  extends  from  Fairfield  Village  to  Shawmut  a dis- 
tance of  3.10  miles.  The  capital  stock  is  $30,000  and  funded 
debt  $30,000.  This  road  has  been  in  operation  about  three  years 
and  the  results  from  operation  make  a good  showing.  The  op- 
erating expenses  are  very  low  compared  with  gross  earnings. 


1 8 STATE  ASSESSORS'  RAILROAD  VALUATION. 

Lewiston,  Augusta  & Waterville  Street  Railway. 

This  road  has  a total  mileage  of  130.847  miles  of  main  line 
track  and  its  route  furnishes  service  to  a large  population. 
The  capitalization  consists  of  $600,000  preferred  stock,  $2, 400- 
goo  common  stock  and  $3,500,000  funded  debt.  The  merging 
of  the  several  independent  lines  which  make  up  this  total  mile- 
age under  one  strong  management  has  resulted  in  a marked  im- 
provement in  the  service  rendered.  The  gross  and  net  earnings 
of  this  road  covering  a few  years  past  have  shown  a steady  in- 
crease. 

Norway  & Paris  Street  Railway. 

This  is  a little  railroad  line  extending  from  South  Paris  to 
Norway,  2.13  miles.  Capital  stock  $50,000  and  funded  debt 
$38,000.  This  capitalization,  however,  includes  an  electric  light- 
ing plant  and  we  have  reported  a valuation  only  of  the  property 
used  in  the  operation  of  the  railroad. 

Portland  Railroad. 

This  line  embraces  81.61  miles  of  main  line  track.  The  cap- 
ital stock  is  $1,999,538  and  funded  debt  $2,250,000.  The  divi- 
dend rate  reported  on  the  stock  in  1910  was  4 per  cent,  and  the 
average  interest  rate  on  the  funded  debt  is  3.94  per  cent. 
$1,737,800  of  the  capital  stock  is  held  in  this  State.  Both  gross 
and  net  earnings  for  the  years  we  have  examined  show  a steady 
increase.  This  railroad  gives  service  to  a large  population. 

Portland  & Brunswick  Street  Railway 

This  line  extends  from  Brunswick  to  Yarmouth  15.80  miles 
and  is  a connecting  link  between  the  Lewiston,  Augusta  & 
Waterville  road  and  the  Portland  Railroad.  The  capital  stock 
is  $300,000  and  the  funded  debt  $225,000.  The  operations  of 
this  road  as  an  independent  line  have  not  been  profitable  and 
it  could,  we  believe,  be  operated  with  better  results  by  either 
one  of  the  connecting  roads  above  named. 

Rockland,  South  Thomaston  & St.  George  Railway. 

This  line  is  3,917  miles  in  length.  The  capital  stock  is  re- 
ported as  $122,400  and  funded  debt  $10,075.  It s value  as  an 
earning  proposition  is  yet  to  be  demonstrated. 


19 


STATE  ASSESSORS'  RAILROAD  VALUATION. 

Rockland,  Thomaston  & Camden  Street  Railway. 

• .This  road  has  a main  line  mileage  of  21.167  miles.  The  cap- 
: ital  stock  is  $400,000  and  funded  debt  $800,000.  This  capital- 
ization, however,  includes  gas  and  electric  light  property, 
, but  our,  reported  valuation  includes  only  the  railroad  property. 
The  dividend  rate  on  the  shares  reported  in  1910  was  5 per  cent, 
and  the  interest  rate  on  the  bonds  4 per  cent.  Most  of  the  stock 
is  held  in  Maine,  or,  to  be  exact,  $394,400.  The  earning  power 
of  this  property  is  fully  established. 

Somerset  Traction  Company. 

This  line  extends  from  Skowhegan  to  Madison,  12.20  miles. 
The  capital  stock  is  $30,000  and  the  funded  debt  $75,000. 
There  is  also  a floating  debt  of  $42,118-  The  cost  of  the  road 
and  equipment  is  given  as  $135,951.  The  gross  earnings  during 
the  past  few  years  have  shown  a moderate  increase. 

Waterville  & Oakland  Street  Railway. 

This  line  extends  from  Waterville  to  Oakland,  5.40  miles. 
The  capital  stock  is  $100,000  and  the  funded  debt  $125,000. 
The  earnings  of  this  road  are  not  sufficient  to  support  this  cap- 
italization and  doubtless  some  reorganization  should  be  effected. 

WATERVILLE  & FAIRFIELD  STREET  RAILWAY. 

This  line  extends  from  Waterville  to  Fairfield,  5 miles.  The 
capital  stock  is  $200,000  and  the  funded  debt  $237,000.  This 
capitalization  includes  an  electric  light  property,  but  we  have 
reported  what  we  consider  the  value  of  the  property  used  in 
the  operation  of  the  railroad. 

This  is  one  of  the  good  street  railroad  properties  and  the  earn- 
ing power  is  fully  established,  showing  a steady  increase  during 
the  past  four  years. 

The  average  number  of  employees  of  the  steam  railroads  in 
this  State  is  approximately  12,000  and  the  street  railroads  near- 
ly 2,000.  Indirectly,  no  doubt,  employment  is  given  to  several 
thousand  more.  The  amount  of  the  capital  stock  of  steam  rail- 
roads held  in  this  State  is  $9,146,250  and  of  the  street  railroads 
$4,998,215  par  value. 


20 


STATE  ASSESSORS'  RAILROAD  VALUATION. 


Conclusion. 

It  is  gratifying  to  note  that  there  has  been  constructed  in  this 
State  during  the  past  twenty  years  928  miles  of  steam  railroads 
and  practically  all  of  our  street  railroad  lines  have  been  built 
during  this  period.  Maine  has  shown  a marked  increase  in 
wealth  as  an  inevitable  consequence  during  these  twenty  years ; 
far  greater  than  during  any  like  period  in  her  history. 

The  development  and  progress  of  this  State  and  every  State 
has  always  been,  and  will  be  coincident  with  the  development 
and  improvement  of  its  transportation  facilities.  A broad  and 
liberal  policy  should  be  adhered  to  in  orddr  that  the  progress 
and  prosperity  of  Maine  may  continue. 

GEORGE  POTTLE, 

W.  J.  THOMPSON, 

E.  M.  JOHNSTON, 

Board  of  State  Assessors 


Augusta,  Feb.  2,  1911. 


